44 ms·
Most places I’ve seen have year on year bonuses for sales growth. It doesn’t have be a flat bonus for a given year. So if Alice finds good customers and retai
by refurb 4y ago
Most places I’ve seen have year on year bonuses for sales growth. It doesn’t have be a flat bonus for a given year.
So if Alice finds good customers and retains them, she does better than Bob because that customer is retained and she’s finding new accounts while Bob is trying to find customers to replace the sales he lost this year.
It’s not trivial to develop sales incentive programs, I agree, but it’s way easier than doing it for home office people whose job only has a loose connection to revenue and profit and any measure is inherently subjective.
- kqr 4y agoYou are fortunate to have worked in mostly good places! I have seen a lot of sales compensated on commission at contract close. It gets as dysfunctional as one would expect. I still don't agree it's easier, though. If a customer stays, is it because they've received great support or because the salesperson found a good fit? What I'm trying to say is "if sales get compensated when a customer sticks around, then so should everyone else supporting that customer". Basically the only good incentive programme is profit sharing (or ownership) applied across the organisation.
- wink 4y agoThen again turnover for salespeople is often so fast that just doing 2 'good' years is enough, they move on and the company then needs to find a new salesperson AND new customers.